francine: what is your take on bhp, john? they can now focus on the better quality assets they've got. francine: cover? john: cover is a great market to talk about. a lot of the surface production people were talking about this year which drove copper prices down seems to have fallen away. it looks like the year will finish in deficit again. for bhp tech carry on focusing on copper is good. they don't have that distraction of these other assets to hold them back. from a board perspective, spinning out is a good thing. maybe rio tinto will look at something similar. francine: thank you for joining us. john mayer and jesse riseborough. we will talk ethical investing. some are ditching companies that contribute to climate change. we will bring you the details after the break. ♪ francine: welcome back to "the pulse." here are bloomberg's top headlines. alibaba is being sued by the luxury group kering. they have accused the chinese e-commerce company of allowing the sale of fake goods on its platforms. asking prices for london hom

down 7% now for bhp. angie: still to come in the program, john kerry expected to take a hardline stance in his visit to south korea. details later. >> up next could a boost in demand for chinese property indicate whole price declines have bottomed out? ♪ rishaad: let's check stories making headlines around the world today. angie: the f.b.i. will examine the windshield of the derailed amtrak train to determine what hit the windshield before it crashed. they say there is a mark on the windshield the size of a grapefruit. eight people killed when the train left the track on a curve. rishaad: iranian tv saying a ship carrying 2.5 tons of food and medical aid and has permission to dock in yemen. they have been bombing rebels. angie: hundreds of refugees have landed bringing stories of torture and starvation. many are banglasdeshis and others are fleeing persecution in myanmar. rishaad: we're going to get back to the business day, in terms of what happened in terms of economic data. it was that all important pr

bhp shares are -- /* -- before bouncing back in today's trade. south 32 shares fell over 3% in the first day of trade. >> reporter: it was a disappointing day for the bhp spin-off south 32 which made its share market debut in australia. hitting the boards at $2.13 a share but falling below that level through the trading day. it was set to 2 australian dollars a share but coming in at the lower end of that range. asked if the company was disappointed by the performance of the shares on the first day of trade, the ceo said it's not something he's focused on and he's not disappointed by it. the listing gives the company a market value of $11.3 australian and it makes it the third biggest minor. lots of talk in the lead-up to this float. just how much the company would be worth when bhp initially announced these demerger plans, speculation that the company could be worth as much as $15 billion australian. as commodity prices fell it was scaled back. some as low as 7 or 8 bill dollars. at the end of the day, the company coming in the middle of that ra

bhp spinoffs making their debut.ing on the matinees and and silveraganese which is one of the biggest deals in a year. paul? tradingbit in south32 and 25 minutes and the company is having a few events at the headquarters today. as for where shares are going to trade, it is anybody's guess. upper dentist from $1.48 up to three dollars. toa huge range from $1.48 up three dollars. we have bhp as a gauge and they are having a pretty terrible morning one of the biggest falls since 2008. away from the p company. bhp will concentrate on the iron ore, coal, petroleum and possibly hot ash. world's largest maganese producer. bank on the see the screen from time to time. one service out of the way and they will look at cost cutting, job cuts. how many or where? it also looking at extending mine life. some are toward the end of their life. rishaad: looking for acquisitions or are they taking the target themselves? will it be a credit or a prey? yes, an interesting question, isn't it? there has been plenty of room are of creditor

similar story for bhp in the u.s. are down the most in five months and continued declines from overnight. back home, bhp taking a bit of a chair started trading. more that is there. that is down 3.5% as well. we are back below $60 a ton for the spot rise. that is against the backdrop for we have -- agitating government inquiry for the production strategy of bhp and rio. the chair has been unhappy for some time at the excessive production that he sees coming from these two. are trying to squeeze out competitors and argues it is against the national interest. he was given some sympathy out of camera for a while. tony abbott, the prime mister, says there are claims without production. it is important to get the facts and an inquiry may do that. this morning he appeared to be backing away from the sport of an inquiry, saying he did not want to turn it into a witchhunt. there has been a fair amount of lobbying going on because of this. the ideakenzie called of inquiry ridiculous and a waste of taxpayer money. he said it wo

bhp is putting policies in place. not going to go before a committee before this gets approved again. they will report on the new policy over the coming 12 months. the ceo says bhp has learned and is better as a result of it. thank you. now for a look at the corporate stories making headlines this morning, here is david. david: a group led by petronas has reached a deal on taxes and royalties on $30 billion. the project suffered a setback last week when the local aboriginal group refused to support it. is hoping to succeed where its partner missed. they launched a gold ledge units sold 16 thousands. right now they are entering the field with a compact which will sell for $4700. disney, they have begun their expansion in china, opening its first mainland store. it is the company's biggest in the world and features a castle at the center. a $5.5 billion seem part in the city will open next year. those are the top stories this morning. yvonne: luxury british retailer burberry is lowering outlooks as the chinese buyers sl

rumors.ie bhp because we are looking ahead to that.s a debuts and sydney, sitting trading, selling a selloff down about 6%. to pursuit and the alice raising according to some reports. a star production after the price rebounds. l&g products. about these australian projects are really going to contribute to gdp about $55 billion, aussie dollars, i should mention to help. santos, seemed a bigger chunk of that. seeing things unchanged on the santos for it. some of the things driving the markets in japan, real quick here. we are seeingtims is basic military materials off 1.5%. health care up. upsumer services driving 2.2%. angie? angie: let's dive a little deeper as evil on mentioned. bhp spinoff makes is trading debut. -- as yvonne mentioned. it will be one of the biggest silver mines. of course, we're talking about south32. we have david joining us. tell us about south32 and where it will operate? david: good morning. assets andl have 12 crawls five countries. will beest areas australia and south africa, the largest areas contributing to

this is been a key part of it for some time for bhp.its portfolio, it wants to focus only on iron ore, copper a much smaller suite of assets, about $6 billion worth of mines and other assets it's about 2012. it is all about making additional cost savings and about focusing on as much profit. in fact, the ceo describes it a bit like a restaurant. he says at the moment, they are kind of slamming ready meals into the microwave, and with this process and with this process of verification, there will be a cordon bleu chef serving things that. anna: that is a lovely metaphor. itself32 going to be a -- is south32 going to be a takeover target? david: that is an interesting question. some people are looking for mining assets being headed up by former mining executives, mick davis, the ceo of extra on a. -- ceo of xtrata. and they offered about 10 billion for many of these assets last year so yes, certainly the market will be looking to the in this becomes a takeover target certainly looking to see how quickly that occurs. anna: david, thank you

jon: coming up, a slow start for bhp's spinoff. the minor trading day valued at just over $9 billion. ♪ jon: good morning and welcome back. i want to get to the big top story this morning. shares in php trading a little bit lower. south 32 the ceo spoke to bloomberg about the business strategy this morning. >> the problem we had from day one is going live and from the retail model which allows us to aggregate which we think will help us grow. so taking loads of management out, driving efficiency and lowering costs. it is the best way to grow. jon: going to bring in bloomberg's resident mining expert. the top headline is the valuation of just over $9 billion. guest: they clearly would be disappointed with that. clearly the backdrop of commodity prices falling hasn't helped them get exposure to obscure commodities like manganese, led, silver -- none of those commodities performing very well. manganese has been the worst performing mind commodity this year. jon: analysts are saying they will struggle to create any kind of volcanic gro

bhp itself demands plans to defer spending. what do you see going on in the space right now? what i see is the evolution. natural evolution of a free market which will give customers what they want. they can be assured they're having the lowest cost of supply to meet demand. there was a huge surging demand from china that resulted in more demand than supply. brought new supply into the market. some of it high cost. demand is now being met by supply and will likely be met in some years to come. prices falling and what happens then is high cost of supply has to come out of the market and low cost suppliers like us start to moderate our growth plans but in the end customers get what they expect from free markets and they get the security of supply at a sustainable price that is important for them to believe in us and believe in australia. >> okay. the price is around about $60 a ton give or take at the moment. do you see that as fair value or where do you see, i guess, the value of iron ore when it comes to that spot price? >> the value is determined by supply and demand. so rig

mining giant bhp was the biggest loser. started trading today at a much lower price than expected. in other markets in the asia-pacific region hong kong retreated from the strong gains on friday. it sagged 0.8%. indonesia gained .2%. market players stayed on the sidelines. >>> the supply of new condominium in greater tokyo area fell to a 23 year low in april. sluggish demand in the suburbs is dragging down the overall market. the real estate economic institute says april saw nearly 2300 units come on the market in tokyo and three neighboring prefectures. that's the lowest figure since 1992 for the month of april. down 7.6% year-on-year marking a decline for the four straight month. rising construction cost led to a drop of units but officials predict an upturn in coming months. they say condos in large come pleases will come on to the market from june in the city center where there's demand from affluent home buyers. >>> japanese authorities are debating what to do about drones. recent accidents have prompted calls for stricter regulation. yet business people say the unmanned aircr

bhp billiton is among the best performers on the index. time for a quick look at some of the day's other top stories. lloyds bank lost 900 million euros on the forced sale of the bank, tsb. they were forced to spin off tsb after the government bought a stake in the group in 2009. they reported a rise in pretax profit in the first quarter. shares of more than 5%, the best performer on the ftse. tesla has unveiled a line of batteries for homes and businesses. the products will still -- store solar power. ceo elon musk says they will transform how battery power is delivered. a massive plant will employ 6.5 thousand people -- 6500 people. twnew figures show global shipments of tablets have dropped nearly 6%. it has some people asking if tablets have gone the way of the personal computer. experts say consumers are holding onto their gadgets longer. apple has reported a 22% dip in ipad demand. are you ready to rumble? saturday is a long-awaited fight between two taxing legends, filipino mailing patio -- filipino manny pacquiao and floyd mayweath

publicly-listed dealmaker have a huge project on the development board in australia, where companies like bhproduce their iron ore. that project is on the board and is worth about $6 billion. that is one project. a huge chinese conglomerate, expanding demand they have already in australia. there are plenty of projects in train and plenty of investment to come in the australian iron ore sector. angie: iron ore prices have been falling. our potential investors being deterred by this? potential investors being deterred by this? david: it is an interesting point. demandrices have fallen, for iron ore in china is not growing as quickly as it once was. it is still growing. that is the key issue. are rife, producers they will continue to see tens of millions of people transfer from rural areas to urban areas. they will need to continue making those investments. the current price environment does not seem to be acting as a deterrent. angie: david stringer joining us from melbourne. thank you for that. to another david now, our david ingles. a quick look at other top headlines this morning. david: tha

clear he was talking about a narrow band of companies, the usual suspects, apple, google, rio tinto, bhpingst of the world is to be watching what australia does tonight on multinational tax avoidance. rishad: there are -- >> there are 30 companies engaged in this activity. they have not been paying their fair share. iny have paid no tax australia. only by being embedded in businesses have we been able to .ork out their business model we have identified the sums that have been shifted. identifying the actual amount that is required to be remitted in tax is a different story. that is likely to play well politically here. there are a few other cherries in the budget as well. a childcare program, introducing gst on online purchases. the government promised a routine budget and that looks like that is what they would deliver, rish. rishad: last time you got the senate which was divided, tony made that's much more difficult. why should it be different this time? paul: it is not, really. any attempt to reform is going to be held to ransom to any special interest once it hits the senate. for the

glencore and bhp after the china rate cut. -- the ftse 100 starting to turn higher of 0.4%.e: the grocery story. m&a could be in the air. check that out. 15% higher. the delhaize. we had reports of their preliminary talks between the companies to merge. back to 2006 they tried before and do now workout. it is reported. a belgium and french newspaper that several sources are disclosing they are once again discussing. not as far as to painting a price or structure picture just yet but to the own nonfactor is at the delhaize family and how much of they would aback such a deal. can they make it work this time? together they would have a 25 billion euro capitalization company. those stocks are on the up on the talks of m&a. on the downside, and airbus crash. a400m, i know you will dig into this story. it is suspended for the moment. it crashed and it is down when you are looking at the stock repercussions. it is a human tragedy. jonathan: thank you very much. the cause of the crash is unknown. andrea joins us. what do we know exactly? it is hard to read. what are the details so f

we'll wait to see how that goes here but here in the united states bhp trades of course bhp is down. is also to the down side. the material names are notably weak. a lot of people are watches the south 32 deal and you were mentioning ann and ascena here. that's quite a valuation for that. it's funny that the names associated with these two companies, lane bryant dress barn charming the names are more famous than the company itself. ann taylor 18 billion market cap. that's it. that's a small, small cap a name. veers on microcap. ascena is only ann is a bit higher at this point, this is part of the broader consolidation here. still too many retailers out there, still more overstore than anywhere else in the world. it was 56% a fewiers for ann, that really matters in this kind of environment. that may have been a factor wile they were sold. apparel shows up a bit. chico is up abercrombie, francesca, all fractional gains, as you can see here today. oil was near the high for the year overnight. that has put pressure on the airlines. virgin, southwest, american are weak. i've been noting t

the tpp has the old nafta offshoring style promotion rule bhps it comes to labor, what charlie was saying, we're not going to see the folk wages for folks in vietnam go up. because the same rules in the agreement from 2009. during the period the agreement has been in effect the labor conditions have gotten worse. they literally rolled back the labor and environmental standards. they weren't throwing out of the agreement. they were saying to the elite in vietnam and the companies want to offshore. go for it. just do it. >> finally, what the president said it will level the playing field. what is your response to that? >> as a former pro athlete and college athlete i laugh. i know what a level playing field looks like. using a soccer metaphor it's 11-1. they bought the referees. the plague field is not level. nike has everything they want including a president of the united states, unfortunately disappointing many people in our country sporting the deal. great to have you with us. thank you for the story. >>> still to come a city below sea level takes action to keep itself above water with

consortium to buy a smaller australian company to get a foothold in australia's iron rich region where bhp and rio tinto have their high est earning opportunities. it is not only high in ore, it is across the spectrum. rishaad: thanks, david. let's turn to the greek talks. there is a lot of finger-pointing as to who is at fault. it isnance ministers says clear with the blame should fall. david: he wrote this op-ed in which they say austerity is the only deal breaker. it was published and i suggest reading up on this to our viewers at projectsyndicate.org. it is worth five or 10 minutes because it sums up why a deal has not been reached on the view of greece. it is essentially because greece's creditors have really been -- have really taken the hardline on austerity. they have said they basically have done it and they don't need more of it because it will be worse than the situation. in his words, the major sticking point, the only dealbreaker, is the creditors' insistence on more austerity. austerity at the expense of the reform government. he is also challenging the perception that greece

copper has outperformed and i think companies like freeport and bhp and rio tinto have parts of theirre really starting to work again. over to social media, positioning got to be too euphoric linkedin versus twitter, which one of the moves was more overdone? probably linkedin. growth can't be what it is. the moral of the story is be careful where people are overpositioned and do your work. valuations do matter. >> it's a point. let's hold that thought for a second and hone in on what's happening in the energy space. even amid these battery announcements, crude oil, posting another very strong week despite losing gains today, jackie. what are traders saying about it? >> hi there, kelly. it was a strong week a strong month for crude be up with nearly 25%. kind of like what tim was saying about commodities generally think crude oil prices will go higher from here. what's interesting is that you you've got dollar it was stronger today. that's why we saw selling pressure. trayers saying on the last day of the month, that would be yesterday, we popped so high. it's not surprising that we'd